In this article, we will discuss: 5 Cheap Stocks to Buy According to Bill Ackman. For more stocks, you can head to 6 Cheap Stocks to Buy According to Bill Ackman.
5. Restaurant Brands International Inc. (NYSE:QSR)
Pershing Square’s Stake: $1.6 billion
Forward P/E Ratio: 12.90
Restaurant Brands International Inc. (NYSE:QSR)’s shares are up by 8% over the past year and by 8.9% year-to-date. Several analysts have discussed the firm this year. For instance, Scotiabank raised the share price target to $81 from $71 and kept a Sector Perform rating on the stock on April 28th. It discussed Restaurant Brands International Inc. (NYSE:QSR)’s growth as part of the coverage and pointed out that further upside in the shares was possible only in the case of additional growth. Later, in early May, the restaurant company reported its earnings for the first quarter. The results saw Restaurant Brands International Inc. (NYSE:QSR) post $2.26 billion in revenue and $0.86 in earnings to beat analyst estimates of $2.24 billion and $0.83. True to form, Scotiabank bumped the price target to $83 from $81 and kept its Sector Perform rating.
More recently, media reports have suggested that Restaurant Brands International Inc. (NYSE:QSR) might be selling its well-known pizza chain, Pizza Hut. The sale will be made to private equity firm Long Range Capital, and the report comes after the firm had indicated earlier this year that it was considering strategic options for the pizza chain.
The London Company Income Equity Strategy discussed Restaurant Brands International Inc. (NYSE:QSR) in its Q1 2026 investor letter:
“Initiated: Restaurant Brands International Inc. (NYSE:QSR) – QSR is one of the world’s largest restaurant franchisors operating Burger King, Tim Hortons, Popeyes, and Firehouse Subs. The company earns steady royalty and fee income from thousands of franchise locations worldwide, producing naturally high profit margins and strong, predictable cash flow. QSR trades at a meaningful discount to peers like McDonald’s and Yum! Brands, largely due to concerns around Burger King’s U.S. performance. However, management has laid out a clear plan to simplify the business and improve restaurant quality, targeting a nearly fully franchised model by 2028. We see this as a classic “self-help” story where the company’s own actions drive improvement— not reliance on a strong economy. With durable global demand, growing international presence, an attractive dividend, and a clear path to closing the valuation gap with peers, we believe QSR is a strong long term investment and fits well within our Quality-at-a Reasonable-Price framework.”
4. Brookfield Corporation (NYSE:BN)
Pershing Square’s Stake: $2.4 billion
Forward P/E Ratio: 11.89
Brookfield Corporation (NYSE:BN) is one of the largest asset management firms in the world, courtesy of its more than a trillion dollars in assets. The shares are up by 14% over the past year and are down by 3.4% year-to-date. Like other asset managers, Brookfield Corporation (NYSE:BN) has also built a position for itself in the AI infrastructure rollout. For instance, in November, Brookfield Asset Management announced a $100 billion AI infrastructure program after teaming up with NVIDIA and Kuwait’s investment authority. Brookfield Corporation (NYSE:BN)’s partnership with fuel cell company Bloom Energy is also believed to contribute towards powering AI infrastructure provider Oracle’s facilities in New Mexico. More recently, in May, the firm announced that it would invest $500 million in The OpenAI Deployment Company, which is its partnership with OpenAI to push enterprise users towards deploying AI full scale as opposed to the initial pilot stage.
Brookfield Corporation (NYSE:BN)’s infrastructure portfolio sees the firm operate 150 data centers, 308,000 telecommunications sites and tens of thousands of kilometers of fiber optic networks.
3. Hertz Global Holdings Inc. (NASDAQ:HTZ)
Pershing Square’s Stake: $70 million
Forward P/E Ratio: 11.78
Hertz Global Holdings Inc. (NASDAQ:HTZ) is one of the largest rental car companies in America. Its shares are down by 17% over the past year and by 3.5% year-to-date. On May 7th, the firm reported its fiscal first-quarter earnings. The results saw Hertz Global Holdings Inc. (NASDAQ:HTZ) post $2 billion in revenue and $0.72 in loss per share to beat analyst revenue estimates of $1.88 billion and miss the loss estimate of $0.72. The revenue marked an 11% annual jump while the firm’s corporate operating income jumped by 47% to negative $161 million. Hertz Global Holdings Inc. (NASDAQ:HTZ) attributed the improvement to heftier revenue and lower depreciation expenses.
On March 6th, Morgan Stanley had discussed Hertz Global Holdings Inc. (NASDAQ:HTZ)’s shares. The bank adjusted the share price target to $5 from $5.5 and kept an Equal Weight rating on the shares. The coverage came after the fourth quarter earnings cycle as the bank remarked that it had cut estimates for Hertz Global Holdings Inc. (NASDAQ:HTZ) and others due to weaker than expected results.
Pershing Square discussed Hertz Global Holdings Inc. (NASDAQ:HTZ) in its end year 2025 portfolio update:
“Hertz is a leading vehicle rental provider in the early stages of a turnaround led by a strong management team. The company has successfully navigated a challenging period, reached important operational milestones, and is now profitable with a strengthened liquidity profile.
The company successfully completed its fleet refresh and is now in an enviable position with an average vehicle age of less than one year. This younger fleet has driven depreciation costs well below management’s target. Negotiations for this year’s vehicle purchases are also essentially complete, and the management team is confident that these agreements will support continued strong unit economics with depreciation remaining below target levels.
Operationally, Hertz has made significant strides, achieving 84% utilization this quarter, best-in-class amongst peers and the company’s highest level since 2018. These improvements led to its first profitable quarter in two years. We believe Hertz is on a clear path to delivering mid-single-digit EBITDA margins this year, with a line of sight toward achieving $1 billion in EBITDA in the coming years with continued growth afterwards. Over the course of this year, we see tangible demand drivers that support this growth trajectory including a recovery from the travel slowdown related to the trade war and government shutdown, fiscal stimulus, and the U.S. hosting of the World Cup this summer, which should lead to incremental volume and better pricing.”
2. Howard Hughes Holdings Inc. (NYSE:HHH)
Pershing Square’s Stake: $1.1 billion
Forward P/S Ratio: 2.56
Howard Hughes Holdings Inc. (NYSE:HHH) is a real estate development company. Its shares are down by 5.7% over the past year and by 15% year-to-date. With the real estate sector in turmoil, the firm has been busy reinventing itself. On this front, June has been a crucial month for Howard Hughes Holdings Inc. (NYSE:HHH) as it completed its acquisition of specialty insurer Vantage Group for a $2.1 billion all-cash offer. Vantage is a diversified insurance company that operates in the insurance and reinsurance sectors. As part of the deal, Howard Hughes Holdings Inc. (NYSE:HHH) also injected $200 million in cash into Vantage in order to beef up the latter’s balance sheet.
During the first quarter earnings call, the firm’s management asserted that the deal served as a validation of its balance sheet and strategy. Pershing Square also played a key role in the deal. It bought $1 billion of Howard Hughes Holdings Inc. (NYSE:HHH)’s non-voting exchangeable perpetual preferred stock. During the call, Ackman remarked that Pershing and the real estate firm did not have operational experience in the insurance industry and added that “it is an industry where you can make a lot of money and it is an industry where you can lose a lot of money if you do not know what you are doing.”
1. Seaport Entertainment Group Inc. (NYSE:SEG)
Pershing Square’s Stake: $107 million
Forward P/S Ratio: 2.28
Seaport Entertainment Group Inc. (NYSE:SEG) is a real estate firm focused on the entertainment sector. The shares are up by 18.8% over the past year and by 23% year-to-date. The firm has been busy in 2026 consolidating and streamlining its balance sheet. In February, Seaport Entertainment Group Inc. (NYSE:SEG) announced that it had closed food operations at the Tin Building in New York. In its place, the Balloon Museum will open at the facility. Additionally, the firm’s decision to divest the 250 Water Street property aims to remove $7 million in annual cash burn and $61 million in mortgage debt.
In May, Seaport Entertainment Group Inc. (NYSE:SEG) announced that it would partner with Public Service to develop a new restaurant in Manhattan as part of the development of a historic building. During the first quarter earnings call, the firm’s management discussed the deal. Seaport Entertainment Group Inc. (NYSE:SEG)’s management touted the demand for experience-driven destinations in the call:
“For those who are not familiar, Public Records is an experience-driven hospitality and music concept located in Brooklyn that blends food and beverage, live music performances and art with thoughtfully designed spaces and creating a single cohesive destination. The Public Service team is an incredible group of tastemakers with a strong track record of generating consistent demand through a continuously evolving platform that has helped define culture in New York City. While this new project is expected to open in 2027 and more details will be announced in the coming months, it reflects the continued demand we’re seeing for experience-driven destinations and reinforces the Seaport’s unique position as a home for these concepts. Speaking of experience-driven concepts, we kicked off the 2026 concert series at The Rooftop at Pier 17 on May 2, with a sold-out show from Mika.”
While we acknowledge the potential of SEG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SEG and that has 100x upside potential, check out our report about the cheapest AI stock.
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